In Brief
The Union of India (Railways) challenged an arbitral award that granted interest to a contractor on various claims arising from a works contract. The Railways argued, for the first time in the Supreme Court, that clause 13(3) of the contract precluded interest awards. The Court dismissed the appeal, holding that the Railways had waived this objection by expressly consenting to the tribunal's jurisdiction to decide interest claims and by failing to raise the objection before the tribunal or in the High Court. The Court also held that interest awards on arbitrable claims are permissible under the Arbitration Act and that parties cannot raise new pleas for the first time in a special leave petition when they were available earlier."
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